Online used vehicle marketplace Shift has raised $38 million in a series C round of funding led by BMW's venture capital business unit, iVentures. Other participants included DFJ, Highland Capital, G2VP, and Goldman Sachs Investment Partners.
Christian Noske, a BMW iVentures partner, has joined the Shift board of directors, according to the BMW announcement.
"We are interested in technology companies that challenge the status quo and build products that help improve transportation options for consumers," Noske said.
Shift is currently only available in California and Washington, D.C. Shift's online used marketplace strategy is slighlty different than others in the market. Shift doesn't actually own the used vehicles it sells, it acts more as a middleman between buyers and sellers.
The first step after a seller decides to sell a vehicle on the Shift platform is entering basic vehicle information such as mileage, trim, year. Afterward the company will send a person to inspect the vehicle at the seller's home. From there the company will take the seller's vehicle to its mechanics to inspect the vehicle for any problems. The company will then repair any functional or cosmetic issues the car has if the seller agrees to the repairs. Finally the company will take professional photos of the vehicle, post them onto its website along with the car listing, and will hold onto the vehicle while it sells.
Once a sale is completed, Shift will handle the DMV forms, such as title transfer and registration. Shift also has partnership with lenders to offer financing to people buying cars from its website.
Shift’s buyer base is predominately millennial, according to the company. More than 50% of Shift’s customers and 70% of buyers who receive a loan using Shift’s marketplace is in the millennial age range.